1. Field of the Invention
This invention relates generally to systems, methods, and apparatuses for cashless vending. In particular, the present invention relates to a RFID-based method for a secure and reliable, networked cashless vending system.
2. Description of Related Art
Both vending companies and end-users have become increasingly interested in methods of cashless vending designed to reduce or eliminate dependence upon cash for vending transactions. Broadly speaking, current cashless vending systems fall into two categories: debit (i.e. stored value) and credit systems.
Most debit systems rely on the user's carrying actual cash value stored in an electronic form such as a magnetic stripe card or other pre-paid accessed memory device. Vending machines read the stored value and permit a vend to occur provided sufficient cash is present in the authentication device. The advantage of such systems is that they do not require any kind of user account authentication system in the vending machine, nor do they require the user to be registered with the vending provider or with a financial institution. The disadvantage of such systems is that they require the user to carry actual cash value in his possession, making him open to loss or theft. Furthermore, stored value systems do not allow the vending provider a means of remotely monitoring or controlling the vending machines.
Credit systems also require the user to carry some form of access device such as a magnetic stripe card or other similar device, but the device does not contain stored value. Instead, it contains a user ID that must be authenticated remotely with some kind of authentication service such as a bank or credit card company or the vending provider itself. Credit systems have the advantage that the user does not carry actual cash value. A lost or stolen authentication device can be quickly disabled by the authentication service, thereby minimizing financial loss to the user. Furthermore, since available funds are stored remotely, user payment and account management is much more flexible and simple.
Since credit systems must include some kind of communications system linking the vending machine to the authentication service, they offer the possibility of remote management and monitoring. The vending provider can monitor purchases for inventory and planning purposes, and problem vending machines can be detected and shut down quickly without an actual human presence at the machine location.
Credit systems have the disadvantage that users cannot access the system unless they have an account with the authentication service. The vending machines themselves must be connected to the authentication service either through a wired (e.g. dialup or local area network) or wireless (e.g. cellular or wireless local area network) communications system. Data security and reliability of authentication and transaction data become critical to prevent revenue loss to the vending provider and user data theft.